Bell Potter upgrades Codan stock to Buy from Hold

Published on 10/07/2026 at 04:54 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Bell Potter's target for Codan stock is AUD 60.00 after AUD 54.00. Profit outlook is AUD 160.00 million versus AUD 71.20 million.

Codan, AU000000CDA3, Illustration mit AI erstellt.

Codan (ISIN AU000000CDA3) stock was upgraded by Bell Potter from Hold to Buy, with its target raised from AUD 54.00 to AUD 60.00, in the broker coverage reported by FNArena on October 5, 2026. The move followed stronger interim guidance tied to demand for unmanned aircraft communications systems.

Profit outlook doubles prior result

Codan expects first-half fiscal 2027 group net profit after tax of at least AUD 160.00 million, compared with AUD 71.20 million in the prior corresponding period. The comparison gives the guidance a clear earnings dimension rather than making the upgrade dependent only on a higher valuation.

Communications revenue is expected at AUD 400.00 million to AUD 410.00 million in the first half of fiscal 2027, versus AUD 221.80 million in the prior corresponding period. The Communications EBIT margin is expected at 40.00 percent, compared with 26.00 percent previously, according to SureStone Capital in its summary of the September 29, 2026 company announcement.

Analyst optimism meets execution risk

The higher target reflects the operating leverage in Codan's Communications division, where revenue growth and margin expansion are arriving together. Bell Potter also cited supply-chain resilience as a condition for delivering the division's fiscal 2027 revenue outlook, while competition from Silvus could add capacity in early 2027.

Morningstar said on October 2, 2026 that drone demand is supporting Codan's communications growth but warned that current demand may moderate from fiscal 2028. That caution matters because the first-half outlook depends on orders connected to conflict regions and on final product mix and shipments.

Codan joins the ASX 100

MarketScreener reported in September 2026 that Codan was added to the S&P/ASX 100 Index. The inclusion gives the company a larger benchmark profile as its Communications business becomes a greater part of the group earnings story.

Market value and next report

Codan was last quoted at AUD 66.12 on the Australian Securities Exchange on October 5, 2026, with a market capitalization of AUD 12.3 billion. The next report date is February 24, 2027, for the first half of fiscal 2027, according to TradingView.

Lang & Schwarz showed a prior close of EUR 40.60 for October 5, 2026. The further course of trading is shown by the continuously updated real-time quote of Codan stock.